Shareholders' Equity

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Preferred Stock

    The following table summarizes selected terms of each of the series of the preferred stock issued and outstanding as of June 30, 2021:

Preferred Stock(1):	Issuance Date	Depositary Shares Issued	Amount outstanding (in millions)	Ownership Interest Per Depositary Share	Liquidation Preference Per Share	Liquidation Preference Per Depositary Share	Per Annum Dividend Rate	Dividend Payment Frequency	Carrying Value as of June 30, 2021 (In millions)		Redemption Date(2)
Series D	February 2014	30,000,000	750	1/4,000th	100,000	25	5.90% to but excluding March 15, 2024, then a floating rate equal to the three-month LIBOR plus 3.108%	Quarterly	$	742	March 15, 2024
Series F(3)	May 2015	250,000	250	1/100th	100,000	1,000	5.25% to but excluding September 15, 2020, then a floating rate equal to the three-month LIBOR plus 3.597%, or 3.71588% effective June 15, 2021	Quarterly	247		September 15, 2020
Series G	April 2016	20,000,000	500	1/4,000th	100,000	25	5.35% to but excluding March 15, 2026, then a floating rate equal to the three-month LIBOR plus 3.709%	Quarterly	493		March 15, 2026
Series H	September 2018	500,000	500	1/100th	100,000	1,000	5.625% to but excluding December 15, 2023, then a floating rate equal to the three-month LIBOR plus 2.539%	Semi-annually	494		December 15, 2023

(1) The preferred stock and corresponding depositary shares may be redeemed at our option in whole, but not in part, prior to the redemption date upon the occurrence of a regulatory capital treatment event, as defined in the certificate of designation, at a redemption price equal to the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

(2) On the redemption date, or any dividend payment date thereafter, the preferred stock and corresponding depositary shares may be redeemed by us, in whole or in part, at the liquidation price per share and liquidation price per depositary share plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

(3) Series F preferred stock is redeemable on September 15, 2020 and on each succeeding dividend payment date. We did not elect redemption on September 15, 2020 or December 15, 2020.

On March 15, 2021, we redeemed an aggregate of $500 million, or 5,000 of the 7,500 outstanding shares of our non-cumulative perpetual preferred stock, Series F, for cash at a redemption price of $100,000 per share (equivalent to $1,000 per depositary share) plus all declared and unpaid dividends.

The following table presents the dividends declared for each of the series of preferred stock issued and outstanding for the periods indicated:

	Three Months Ended June 30,
	2021						2020
(Dollars in millions, except per share amounts)	Dividends Declared per Share		Dividends Declared per Depositary Share		Total		Dividends Declared per Share		Dividends Declared per Depositary Share		Total
Preferred Stock:
Series D	$	1,475	$	0.37	$	11	$	1,475	$	0.37	$	11
Series F	966		9.66		2		—		—		—
Series G	1,338		0.33		7		1,338		0.33		7
Series H	2,813		28.13		14		2,813		28.13		14
Total					$	34					$	32
	Six Months Ended June 30,
	2021						2020
(Dollars in millions, except per share amounts)	Dividends Declared per Share		Dividends Declared per Depositary Share		Total		Dividends Declared per Share		Dividends Declared per Depositary Share		Total
Preferred Stock:
Series C	$	—	$	—	$	—	$	1,313	$	0.33	$	6
Series D	2,950		0.74		22		2,950		0.74		22
Series F	1,919		19.19		9		2,625		26.25		20
Series G	2,676		0.66		14		2,676		0.66		14
Series H	2,813		28.13		14		2,813		28.13		14
Total					$	59					$	76

In July 2021, we declared dividends on our series D, F, and G preferred stock of approximately $1,475, $950, and $1,338, respectively, per share, or approximately $0.37, $9.50 and $0.33, respectively, per depositary share. These dividends total approximately $11 million, $2 million and $7 million on our series D, F, and G preferred stock, respectively, which will be paid in September 2021.

Common Stock

In June 2019, our Board approved a common stock purchase program authorizing the purchase of up to $2.0 billion of our common stock from July 1, 2019 through June 30, 2020 (the 2019 Program). We repurchased $500 million of our common stock in each of the third and fourth quarters of 2019 and the first quarter of 2020 under the 2019 Program.

On March 16, 2020, we, along with the other U.S. G-SIBs, suspended common share repurchases and maintained this suspension through the fourth quarter of 2020 in response to the COVID-19 pandemic. This suspension was consistent with limitations imposed by the Federal Reserve beginning in the second quarter of 2020. As a result, we had no repurchases of our common stock in the second, third or fourth quarters of 2020.

In December 2020, the Federal Reserve issued results of 2020 resubmission stress tests and authorized us to continue to pay common stock dividends at current levels and to resume repurchasing common shares in the first quarter of 2021. In January 2021, our Board authorized a share repurchase program for the purchase of up to $475 million of our common stock through March 31, 2021. In April 2021, our Board authorized a share repurchase program for the purchase of up to $425 million of our common stock through June 30, 2021, consistent with the limit set by the Federal Reserve. In July 2021, our Board authorized a share repurchase program for the purchase of up to $3.0 billion of our common stock through the end of 2022.

The tables below present the activity under our common stock purchase program for the periods indicated:

Three Months Ended June 30, 2021					Six Months Ended June 30, 2021
Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)		Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)
5.0	$	84.71	$	425	11.2	$	80.00	$	900

	Three Months Ended June 30, 2020					Six Months Ended June 30, 2020
	Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)		Shares Acquired (In millions)	Average Cost per Share		Total Acquired (In millions)
2019 Program	—	$	—	$	—	6.5	$	77.35	$	500

The table below presents the dividends declared on common stock for the periods indicated:

	Three Months Ended June 30,
	2021				2020
	Dividends Declared per Share		Total (In millions)		Dividends Declared per Share		Total (In millions)
Common Stock	$	0.52	$	179	$	0.52	$	183
	Six Months Ended June 30,
	2021				2020
	Dividends Declared per Share		Total (In millions)		Dividends Declared per Share		Total (In millions)
Common Stock	$	1.04	$	361	$	1.04	$	366

Accumulated Other Comprehensive Income (Loss)

The following table presents the after-tax components of AOCI for the periods indicated:

	Six Months Ended June 30,
(In millions)	2021		2020
Net unrealized gains (losses) on cash flow hedges	$	53	$	53
Net unrealized gains (losses) on available-for-sale securities portfolio	467		899
Net unrealized gains (losses) related to reclassified available-for-sale securities	(46)		7
Net unrealized gains (losses) on available-for-sale securities	421		906
Net unrealized (losses) on available-for-sale securities designated in fair value hedges	(37)		(40)
Net unrealized gains (losses) on hedges of net investments in non-U.S. subsidiaries	(93)		68
Other-than-temporary impairment on held-to-maturity securities related to factors other than credit	(2)		(2)
Net unrealized (losses) on retirement plans	(168)		(173)
Foreign currency translation	(596)		(1,242)
Total	$	(422)	$	(430)

The following table presents changes in AOCI by component, net of related taxes, for the periods indicated:

(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for-Sale Securities		Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries		Other-Than-Temporary Impairment on Held-to-Maturity Securities		Net Unrealized Losses on Retirement Plans		Foreign Currency Translation		Total
Balance as of December 31, 2020	$	57	$	848	$	(204)	$	(2)	$	(178)	$	(334)	$	187
Other comprehensive income (loss) before reclassifications	(37)		(464)		111		—		—		(262)		(652)
Amounts reclassified into earnings	33		—		—		—		10		—		43
Other comprehensive income (loss)	(4)		(464)		111		—		10		(262)		(609)
Balance as of June 30, 2021	$	53	$	384	$	(93)	$	(2)	$	(168)	$	(596)	$	(422)

(In millions)	Net Unrealized Gains (Losses) on Cash Flow Hedges		Net Unrealized Gains (Losses) on Available-for-Sale Securities		Net Unrealized Gains (Losses) on Hedges of Net Investments in Non-U.S. Subsidiaries		Other-Than-Temporary Impairment on Held-to-Maturity Securities		Net Unrealized Losses on Retirement Plans		Foreign Currency Translation		Total
Balance as of December 31, 2019	$	(70)	$	409	$	46	$	(2)	$	(187)	$	(1,072)	$	(876)
Other comprehensive income (loss) before reclassifications	103		456		22		—		—		(170)		411
Amounts reclassified into (out of) earnings	20		1		—		—		14		—		35
Other comprehensive income (loss)	123		457		22		—		14		(170)		446
Balance as of June 30, 2020	$	53	$	866	$	68	$	(2)	$	(173)	$	(1,242)	$	(430)

The following table presents after-tax reclassifications into earnings for the periods indicated:

	Three Months Ended June 30,
	2021		2020
(In millions)	Amounts Reclassified into (out of) Earnings				Affected Line Item in Consolidated Statement of Income
Cash flow hedges:
Gain reclassified from accumulated other comprehensive income into income, net of related taxes of $7 and $6, respectively	$	18	$	15	Losses reclassified (from) to other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of $1 and $0, respectively	2		2		Compensation and employee benefits expenses
Total reclassifications into AOCI	$	20	$	17
	Six Months Ended June 30,
	2021		2020
(In millions)	Amounts Reclassified into (out of) Earnings				Affected Line Item in Consolidated Statement of Income
Available-for-sale securities:
Net realized gains (losses) from sales of available-for-sale securities, net of related taxes of $0 and $1, respectively	$	—	$	1	Net gains (losses) from sales of available-for-sale securities
Cash flow hedges:
Gain reclassified from accumulated other comprehensive income into income, net of related taxes of $13 and $8	33		20		Net interest income reclassified from other comprehensive income
Retirement plans:
Amortization of actuarial losses, net of related taxes of $4 and $4, respectively	10		14		Compensation and employee benefits expenses
Total reclassifications (into) out of Accumulated other comprehensive loss	$	43	$	35